[149 Pages Report] The Over the Air Updates Market for automotive is estimated to be USD 1.42 Billion in 2016 and is projected to grow at a CAGR of 18.2% during the forecast period, to reach USD 3.89 Billion by 2022.

In this study, 2016 has been considered the base year, and 2017 to 2022 the forecast period, for estimating the size of the Over the Air updates market for automotive. The report analyzes and forecasts the market size, by value (USD million), of the Over-the-Air updates market for automotive. The report segments the OTA updates market and forecasts its size on the basis of region, technology type, application type, vehicle type, and electric vehicle type. The report also provides a detailed analysis of various forces acting in the market including drivers, restraints, opportunities, and challenges. It strategically profiles key players and comprehensively analyzes their market shares and core competencies. It also tracks and analyzes competitive developments such as joint ventures, mergers & acquisitions, new product launches, expansions, and other activities carried out by key industry participants.

The research methodology used in the report involves various secondary sources such as National Highway Traffic Safety Administration (NHTSA), GENIVI Alliance, Japan Automobile Manufacturers Association (JAMA), European Automobile Manufacturers Association (ACEA), Canadian Automobile Association (CAA), and Korea Automobile Manufacturers Association (KAMA). Experts from related industries and OTA vendors have been interviewed to understand the future trends of the OTA updates market for automotive. The market size of the individual segments was determined through various secondary sources, industry associations, white papers, and journals. The vendor offerings were also taken into consideration to determine the market segmentations. The top-down approach has been used to estimate and validate the size of the global OTA updates market for automotive. The data triangulation and market breakdown procedures were employed to complete the overall market engineering process and arrive at the exact statistics for all the segments and sub-segments.

The figure given below illustrates the break-up of the profile of industry experts who participated in primary discussions.

The ecosystem of the Over the Air updates market for automotive consists of manufacturers such as Continental AG (Germany), Delphi Automotive (U.K.), Robert Bosch GmbH (Germany), and Denso Corporation (Japan), and research institutes such as Japan Automobile Manufacturers Association (JAMA), European Automobile Manufacturers Association (EAMA), Canadian Automobile Association (CAA), and Korea Automobile Manufacturers Association (KAMA).

Target Audience For Over the Air Updates Market

Automobile manufacturers

Connected car devices manufacturers

Automobile organizations/associations

Cloud service providers

Compliance regulatory authorities

Government agencies

Information Technology (IT) companies & system integrators

Investors and Venture Capitalists (VCs)

Scope of the Report Over the Air updates market

Over the Air updates market for automotive, By Region

North America

Europe

Asia-Pacific

Rest of The World (RoW)

Over the Air updates market for automotive, By Technology Type

Firmware over-the-air (FOTA)

Software over-the-air (SOTA)

Over the Air updates market for automotive, By Application type

Telematics Control Unit (TCU)

Electronic Control Unit (ECU)

Infotainment

Safety & Security

Others

Over the Air updates market for automotive, By Vehicle Type

Passenger Cars

Light Commercial Vehicles

Heavy Commercial Vehicles

Over the Air updates market for automotive, By Electric Vehicle type

Battery Electric Vehicle (BEV)

Hybrid Electric Vehicle (HEV)

Plug-in Hybrid Electric Vehicle (PHEV)

Available Customizations

MarketsandMarkets offers the following customizations for this market report:

The automotive industry is witnessing the development of disruptive technologies and innovations. Various advanced features such as infotainment, telematics systems, and autonomous driving have become an integral part of high-end automobiles. Most of these technologies use real-time data and require regular updates such as live traffic updates and map updates. The connected vehicle platforms are increasingly enabled to receive over-the-air (OTA) updates that communicate operational and diagnostic data from onboard systems and connected devices. Also, automakers seek to use OTA updates to enhance customer satisfaction by increasing operational efficiency, vehicle performance, and feature advancement. At the same time, OTA updates can improve the response time and reduce vehicle recalls and expenses.

Over-The-Air (OTA) updates is a process of transmitting diagnostic and operational data from a remote server to onboard systems and components of the vehicle to upgrade various applications of the vehicle such as ECU algorithms and infotainment. These eliminate the need to visit a workshop, dealer garage, or vendor site. OTA updates can be categorized into Firmware over-the-air (FOTA) and Software over-the-air (SOTA) updates. FOTA updates refer to the upgradation or replacement of firmware program stored in ECU, memory, or connected devices. On the other hand, Software over-the-air (SOTA) updates require downloading of software components to update or replace software components such as maps, graphics, fonts, audio, and video multimedia of the device.

The global OTA updates market for automotive is projected to reach USD 3.89 Billion by 2022, at a CAGR of 18.2% from 2017 to 2022. Some of the key market drivers are increasing number of connected car devices in vehicles, increasing application of infotainment, and government norms regarding vehicle safety and security.

The global OTA updates market for automotive is segmented by technology type, application, vehicle type, electric vehicle type, and region. The SOTA updates market accounts for the largest share of the global OTA updates market. However, in terms of growth, the FOTA updates market is projected to grow at the highest CAGR during the forecast period. The SOTA updates segment is projected to remain the largest market during the forecast period. The growth of automotive SOTA updates segment is expected to be driven by increasing infotainment applications such as live traffic updates, park assist, e-mail applications, and social media apps. Also, to understand the application areas, the report discusses the market for automotive OTA updates under five distinctive applications, namely, telematics control unit (TCU), electronic control unit (ECU), infotainment, safety and security, and others. Further, to understand the application of OTA updates in different vehicle segments, the market is segmented into passenger cars and commercial vehicles. By electric vehicle type, the market is segmented into battery electric vehicle (BEV), hybrid electric vehicle (HEV), and plug-in hybrid electric vehicle (PHEV). The study also segments the global OTA updates market for automotive into four key regions, namely, Asia-Pacific, Europe, North America, and the Rest of the World (RoW).

The telematics control unit (TCU) is estimated to account for the largest share of the global OTA updates market for automotive in 2017. The infotainment application is estimated to be the second largest segment of the OTA updates market, followed by electronic control unit (ECU), safety and security, and others. The others segment includes user interface program and applications. The growth of the OTA updates market for TCU segment can be attributed to the increasing number of telematics applications. Various automotive OEMs, especially in North America and Europe, are offering telematics control unit as a standard device in their vehicles. OEMs such as General Motors (U.S.), Mercedes-Benz (Germany), BMW (Germany), and Volkswagen AG (Germany) provide the telematics control unit in their passenger car models. Furthermore, the TCU will help the automotive companies to analyze the frequently occurring problems within the vehicle, which will then be rectified in the new products. The updates in TCU applications and real-time data analytics are expected to drive the OTA updates market for TCU application.

North America is estimated to account for the largest market share followed by Europe, Asia-Pacific, and Rest of the World (RoW), respectively. North America is projected to be the largest market during the forecast period due to various factors such as increasing connected car devices in vehicles, ramping up of electric vehicle production, infotainment and telematics services updates, and increasing safety updates. In terms of growth, the Asia-Pacific OTA updates market is estimated to grow at the highest CAGR during the forecast period. The market growth in Asia-Pacific is expected to be driven by increasing number of connected car devices in vehicles and growing communication and information technology infrastructure.

Some of the major restraints for the global OTA updates market for automotive are lack of supporting infrastructure and low awareness in developing countries. As of 2017, there is a low penetration of connected car devices in developing countries due to lack of supporting infrastructure for data communication. These factors may pose a challenge to the growth of the OTA updates market for automotive.

The major players in the global OTA updates market for automotive are Robert Bosch GmbH, Continental AG, Verizon Communications, Harman International, Garmin Ltd., Airbiquity, Movimento, and Delphi Automotive PLC. The last chapter of this report covers a comprehensive study of the key vendors operating in the OTA updates market for automotive. The competitive landscape matrix is divided into four distinct categories, namely, dynamic differentiators, visionary leaders, emerging companies, and innovators. The evaluation of market players is done by taking various factors into account such as new product development, R&D expenditure, business strategies, product revenue, and organic and inorganic growth.

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